Q3 2014 KEY HIGHLIGHTS
- SAP’s acquisition of Concur Technologies for $7.6 billion was the highest value strategic deal in Q3 2014.
- Vista Equity Partners’ acquisition of TIBCO Software for $4.0 billion was the largest private equity transaction in Q3 2014.
- Both of these deals occurred in the Business Software segment, which consists of software designed for general business practices and not specific vertical industries.
- Strategic acquisitions year-to-date represented 86 percent of total volume and 73 percent of total value, respectively.
Q3 2014 KEY TRENDS
- Total transaction volume in Q3 2014 declined by 14 percent over Q2 2014, from 1,015 to 868.
- Total transaction value in Q3 2014 rose by 31 percent over Q2 2014, from $48.7 billion to $63.9 billion.
MULTIPLES & VALUE TRENDS
- Both the median revenue and EBITDA multiple moved slightly from 2013 through the 1st 3 Quarters of 2014.
- The median revenue multiple increased from 2.1x to 2.4x, while the median EBITDA multiple shifted from 11.2x to 11.0x.
TOP TEN DEALS THROUGH Q3 2014
The top ten deals by value have seen five new additions since our half year report. In terms of Niche Software, which is targeted to specific vertical industries, the largest Healthcare transaction in Q3 2014 and year-to-date was Cognizant Technology Solutions’ acquisition of TriZetto.
These five transactions, with an aggregate value of $19.7 billion, represented 11 percent of transaction value in the 1st 3 Quarters of 2014 and 31 percent of Q3 2014 transaction value in the Information Industry.